Bethesda, MD - September 10, 2002 - American Capital Strategies Ltd. (Nasdaq:ACAS) is correcting a wire service report issued earlier today that implied that the company was forecasting an increase in non-accruing loans above the level stated in the company's February, 2002 guidance to its stockholders and the investment community. That is not correct. The company yesterday reiterated and did not change the February guidance on non-accruing loans or any other subject.
The company's current guidance to its stockholders and the investment community, which is unchanged from that issued in February, 2002 is as follows:
| 1. |
We Anticipate Strong Demand |
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a. |
Due to reduce availability of senior debt |
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b. |
Growing market share
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| 2. |
We Anticipate a Strengthening in the Economy |
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a. |
We are prepared if there is a double dip recession We can achieve our NOI target even if we experience a double dip recession.
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| 3. |
We will continue to increase average leverage at American Capital Relative to leverage levels in 2001.
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| 4. |
New Investments will Range Between $475 and $550 million First half annualized new investments totaled $497 million.
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| 5. |
Principal Repayments Will Range Between $70 and $90 million First half annualized principal repayments totaled $69 million.
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| 6. |
Annual Average Non-Accruing Loans Will Range Between $60 and $75 million First half annualized annual average non-accruing loans totaled $70 million.
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| 7. |
Number of Employees Will Range Between 85 and 108 at Year End End of first half number employees totaled 88.
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| 8. |
Net Operating Income Per Share (NOI) Will Range Between $2.54 and $2.62 First half annualized totaled $2.50 per share.
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| 9. |
Net Return on Equity at Cost Will Range Between 13.8% and 14.8% First half annualized net return on equity at cost totaled 14.1%. |
American Capital has a declared a $.66 per share dividend to be paid on October 1, 2002 to record holders as of September 12, 2002. This dividend is an 18% increase over the third quarter 2001 regular dividend of $0.56 per share. American Capital has paid or declared $9.64 in dividends since its August 1997 IPO at $15.00 per share. American Capital is a publicly traded buyout and mezzanine fund with capital resources exceeding $1 billion. American Capital is an equity partner in management and employee buyouts; invests in private equity sponsored buyouts, and provides capital directly to private and small public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about American Capital's flexible financing and ability to provide senior debt, subordinated debt and equity should contact Mark Opel, Principal, at (800) 248-9340, or visit our website.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional or national economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
